Selecting a brokerage company you can trust to handle your money is the very first step in investing in the stock market. Previously, there weren’t many options, and the services were more or less quite similar. However, many options exist today, each with their own unique features.
When researching different investing apps, it’s easy to become overwhelmed.
One of the major aims of these apps is to facilitate the process in a lot of ways. Robinhood and Acorns are the two popular investing apps for millennials.
Investing is being revolutionized by these two players. Despite their uniqueness and differences, both strive to accomplish the same goal. To do this, we need to offer cheap and efficient services to break down entry barriers to the market.
Robinhood vs Acorns: Where’s the catch?
You can place an orders for stocks, ETFs, options, and cryptocurrency with Robinhood’s commission-free stock trading app. A simple way to invest in stock market futures is provided for beginners. With a fantastic user interface, the brokerage is intentionally simple.
The model of Acorns makes investing simple and straightforward with the spare change Round-Ups. People who find it difficult to think about their investments actively can benefit from this. The money that you invest is not bought individually, but instead is diversified across 5 prebuilt portfolios.
In terms of investing models, Acorns and Robinhood are very different right off the bat. The decision between the two is largely dependent on whether you follow an active or passive investment strategy.
- Individuals can invest their money in both of these services at low costs.
- Robinhood’s commissions are 100% free and there is no monthly cost (except for Gold).
- The monthly fee ranges from $1 to $5.
- Those who wants to make their own investment decisions should use Robinhood.
- An Acorns’ investment is for the hands-off investor who wants to profit from the market’s performance while staying diversified across all industries.
- With Acorns, investors are only able to invest in one of five portfolios. No individual stocks.
- Acorn charges fees for their services, but customers should expect this since round-up systems require a great deal of automation.
- Robinhood Gold offers research and margin investing for $5 per month.
- Both offer easy-to-use application-based services that are beginner-friendly.
- Robinhood is fantastic for the new investors who want to pick and choose their investments.
- Acorns app is good for those who are bad at saving money and investing, and those who do not want to choose where to put their money.